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LED configuration for PICAXE 'Testing the System'

Hello everyone. Ground-zero beginner here. I've been a programmer for maaaaaaaaany moons, and I'm using robots as an excuse to learn about electronics. It's strange, yet fun to be a complete newbie again ;)

Some parts are on their way and I am spending my time deciphering the picaxe manual. One paragraph confused me and I think I finally figured it out, but I would like to have confirmation.

 It's in picaxe_manual1.pdf in the 'Testing The System' section when it describes the LED connection: